(CCL) £48.18


Loss to date: 4.2% Orig­i­nal en­try point: Buy at £50.33, 19 Oc­to­ber 2017

CRUISE OP­ER­A­TOR Car­ni­val (CCL) has gained pos­i­tive mo­men­tum af­ter re­port­ing an­nual net rev­enue yields are ex­pected to rise 3.5%, up from pre­vi­ous guid­ance of 3%.

Shares in Car­ni­val have ad­vanced 9.6% to £48.18 since our last up­date in June. Net rev­enue yield of­fers in­sight into how much money Car­ni­val is mak­ing across its fleet, tak­ing into ac­count the num­ber of rooms and the length of the cruise sea­son.

Look­ing ahead, the com­pany main­tained its fore­cast an­nual earn­ings per share of $4.21 to $4.25 in the year to 30 Novem­ber. In­vestors are likely to be re­lieved the guid­ance isn’t any lower af­ter it was trimmed in June.

‘The key to the in­vest­ment case is whether the in­dus­try can con­tinue to de­liver ro­bust yield growth against the back­drop of ac­cel­er­at­ing ca­pac­ity growth,’ com­ments Shore Cap­i­tal an­a­lyst Greg John­son.


We be­lieve trad­ing at Car­ni­val re­mains ro­bust and are not overly alarmed by the head­winds poised by higher oil prices and cur­rency fluc­tu­a­tions, fac­tors out of the com­pany’s con­trol. The stock will drop out of the Great Ideas port­fo­lio soon as we only run them for 12 months, but we still rate it as a buy. (LMJ)

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